Fredo Industries had the following transactions. 1. 2. 3. Borrowed $5,043 from the bank by signing a note. Paid $2,521 cash for a computer Purchased $454 of supplies on account. (a) Indicate what accounts are increased and decreased by each transaction Debit Analysis Credit Analysis 2 (b) Journalieeach transaction. (Credit account titles are automatically indented when the amount is entered

Transactions

1. Borrowed $5,043 from the bank by signing a note.

2. Paid $2,521 cash for a computer

3. Purchased $454 of supplies

(a)

Debit Analysis Credit Analysis

1. Cash Increased Note Payable Increase

2. Office Equipment Increased Cash Decrease

3. Supplies Inventory Increased Cash Decrease

(b) Journal Entries

Debit Credit

1. Cash $5,043

Note Payable $5043

2. Office Equipment $2,521

Cash $2,521

3. Supplies Inventory $454

Cash $454

Explanation:

All the Assets and expenses accounts increase with debit entry and decreased by credit entry.

All the Revenue, Equity and Liability accounts increase with credit entry and decreased by debit entry.